Stein Mart Sees 2.8% August Comp Sales Decrease

Stein Mart, Inc. saw comparable store sales decrease 2.8% for the month of August, fueling a 2.5% decrease in total sales to $95.7 million from $98.1 million during the same month last year.

                                   Total Sales        Percent Change
                                                    Total   Comparable
    Fiscal Period:               2006      2005     Sales   Store Sales

    August (4 weeks)            $ 95.7    $ 98.1    (2.5)%    (2.8)%
    Year to date (30 weeks)     $796.8    $815.8    (2.3)%    (3.1)%

As anticipated, overall comparable store sales were negative for the month of August. However, the Company did achieve positive results in menswear, ladies social occasion/dresses, special sizes and intimate apparel. Within the Home business, comparable store sales increased in linens and home decor. Geographically, the best sales performance was along the Gulf coast, and in parts of the South and East.

During August, one store (Jacksonville, FL) opened and one store (Las Vegas, NV) was closed. There were 261 Stein Mart stores in operation at the end of August 2006 as compared to 260 stores at the same time last year.